Just 60 per cent of China’s biggest listed-companies met the dividend guidelines laid out by the Shanghai Stock Exchange earlier this year, a blow for attempts to build credibility in China’s equity markets.
Of the members of the FTSE A50 index, only 30 companies paid a dividend of over 30 per cent during the most recent earnings season, according to data compiled by Markit.
In January, the Shanghai bourse told listed companies to return at least 30 per cent of profits to shareholders “because of a definite gap between cash dividend ratios for Shanghai-listed companies and those in mature markets”.
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